SE Texas Record

Tuesday, July 16, 2019

Insurer seeks recovery of $59K payout

By Kelly Holleran | Feb 10, 2011


An insurance company has filed suit against its insured, seeking to recover some of the more than $59,000 in medical costs it paid after a collision.

Plaintiffs Louisiana Construction and Industry Self Insurers Fund and LA Pipeline Rental and Industrial Supply claim they paid defendant Kyle Pate $59,906.84 in workers' compensation benefits and medical costs he incurred after injuries he sustained in a collision.

Pate was working for LA Pipeline on Jan. 28, 2010, when he attempted to make a left turn into a private driveway from Highway 365 at Jade Road in Nederland, according to the complaint filed Jan. 28 in Jefferson County District Court.

Suddenly, defendant Kara Joy Smith attempted to pass Pate on the right-hand shoulder with her 1999 Dodge Caravan when she struck his vehicle in the passenger side, the suit states.

At the time of the collision, Smith's vehicle was insured by defendants Geico and Colonial County Mutual Insurance Co., the complaint says.

Pate's vehicle was insured by Redland Insurance Co., which was taken over by defendant Praetorian Insurance Co. in March. Both are subsidiaries of defendant Deep South Insurance.

Now, Louisiana Construction and LA Pipeline are attempting to recoup some of the expenses they paid to Pate following the collision.

"All defendants in this case are jointly and severally liable to the plaintiffs for their entire subrogation claim under Texas law because when a third-party tortfeasor pays a settlement or judgment to an employee who has been receiving workers' compensation benefits, the tortfeasor and the employee are jointly and severally liable to the compensation carrier for its entire subrogation claim," the suit states.

In their complaint, Louisiana Construction and LA Pipeline seek compensation for all the medical costs and compensation payments they paid to Pate, plus pre- and post-judgment interest, costs, interest and other relief the court deems just.

Shannon Foye of Foye Law in Houston will be representing them.

The case has been assigned to Judge Gary Sanderson, 60th District Court.

Case No. B189-272

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